This is the third annual Census from BWD. It is now established as a definitive reference source for salaries and benefits in UK financial services. The Census records cover the period from 2012, through 2013 and now, 2014. The three sample points span pre and post RDR and so act as a valuable analysis of the impact of this pivotal piece of regulation, whilst also showing how the sector is reshaping itself for the future. Whilst the Census is essentially designed to focus on its core subject – salaries and benefits - the report includes information and analysis on broader sector issues – emerging qualification benchmarks, the balance of independence versus restricted status and other matters of interest and concern to all industry participants and commentators. For a copy of the full report, please click on the following link: https://bwdsearch.wufoo.eu/forms/bwd-salary-benefit-census/

1. Financial Advisers
SALARY AND
BENEFIT CENSUS
2 0 1 4 - 2 0 1 5

2. Please Note
This is an abreviated report
for Financial Advisers.
To download the full BWD financial services salary census click below.
Download Now

3. 4.1 Financial Advisers
Census Highlights
86%
64%
46
81%
81%
77% 69%
14%
33% 3%
86% of Financial Advisers are Male (compared to 90% in 2013 and 88%; in
2012) - the low figure for female advisers is a continued concern. It appears
that the sector is still not making itself attractive enough to the whole potential
workforce. Nevertheless, some comfort can be taken from the move over the
year from 10% female to 14%.
64% of advisers in the Census are independent (2013: 61%),
33% restricted (2013: 33%) and 3% are single tie (2013: 6%)
46 (2013: 43 and 2012: 42). This Census
shows no advisers below the age of 30
(3% in 2013 were under 30). Even allowing
for sampling errors, the minimal flow of
new younger advisers must now be a real
concern for the sector.
81% are Directly Authorised
(2013: 87% ; 2012: 73%),
suggesting the pro DA change
post RDR has reversed a little
81% of Financial Advisers are employed
(this shows a continued shift towards
employment (2013: 77%; 2012: 69%)
Average Age
2014
Independent Restricted Single Tie
2013 2012

4. 4.1 Financial Advisers
Salary Benefits
60%
72%
53%
Where earnings for self-employed respondents
are a defined % of personal production
Those using Balanced Scorecard / KPI have mentioned
the following factors
Bonuses for employed advisers are calculated by
reference to financial measures
Self-employed advisors typically gain
Pension Scheme Membership is
of the business value the produce
61%
7%31%
60%
70%67%
2015
2013
Expect
No Change
Expect
A Fall
2014
2012
2014
Percentage of business income
Multiple of salary earned
A scorecard or KPI basis
Discretionary
31%
8%
38%
47%
2013
33.3%
13.3%
58.3%
37.5%
2014
Business Produced
Retention/Lapses
Compliance
Project Performance
Qualifications Achieved
Team Work
Attitude
Other
76%
44%
75%
17%
15%
41%
49%
19%
2013
87%
47%
87%
7%
9%
41%
44%
11%
Of advisers expect their
earnings to increase in 2015
(2014: 57% for 2014 )
Average days holiday for 2014
27.2

5. £0-20k
£20-40k
£40-60k
£60-80k
£80-100k
£100-150k
£150k+
6.7%
4.1 Financial Advisers
Employed
2014 2012
Salary Earned
Bonus
Total Earnings
Car Allowance Avg.
Employer Pension Cont.
Employee Pension Cont.
£60,490
£16,537
£77,027
£5,571
9.1%
5.1%
£49,053
£11,388
£60,441
£4,696
7.3%
5.6%
£46,337
£16,501
£62,838
£4,000
7.1%
4.5%
£48,789
£17,492
£66,281
N/A
N/A
N/A
2013 2011
16%of advisers also received a car allowance
2014 2012
Self Employed Adviser Total Earnings
£84,521 £56,327 £60,533 £52,550
2013 2011
6%
28%
21.3%
14.7%
12%
11.3%

6. 4.1 Financial Advisers
Other Employee Benefits
2014 2012
Life Cover
PHI
Private Medical
Private Dental
Flexible Benefits
Subsidised meals
Critical Illness
Subsidised training
69%
40%
41%
9%
20%
2%
11%
49%
83%
47%
46%
10%
28%
4%
15%
48%
92%
56%
51%
16%
48%
10%
24%
78%
2013 Advisor Qualifications
The table below shows that 100% of advisers have attained Level 4, as we
would expect. It also shows that the majority of advisers (82.5%) have attained
Chartered status or intend to do so this year or next. For the 2013 Census, we
felt it was that it was perhaps too early to conclude that Chartered will be the
new standard – we can now be more definitive – it is the new standard.
QCF Level 4 (or equivalent)
Expecting to attain chartered 2015
Chartered Status (or equivalent)*
Expecting to attain chartered 2016
* (2013 29.5%; 2012:19%)
100%
49.1%
18.6%
14.8%
Chartered
DOWN
Those Receiving
Employee Benefits
The new standard qualification
Read table above for more

7. 4.1 Financial Advisers
Effects on Earnings
(
Effect of status on earnings (1)
Effects of Gender on Earnings Effects of Qualifications on Earnings
Effect of status on earnings (2)
2014
Independent
Restricted
Single Tie
£76,348
£74,683
£49,167
£59,488
£56,989
£45,706
2013
2014
Directly Authorised
Network Member
£84,042
£60,216
£61,243
£48,741
2013
The table below shows that in 2014 independent advisers earned
2.2% more than their restricted counterparts and 55.3% more than
single tie advisers (in 2013 the gap was 4.4% and 30%)
The table below shows the gender based
differential with male advisers earning 28%
more than females (the same differential as in
2013)
The table below shows that Chartered advisers earn
25% more than those at Level 4. (2013: 23%)
The table below shows that in 2014, directly authorised advisers
earned 38% more than network members (25% more in 2013)
2014 2014
2013 2013
£82,918 £59,604
£64,669 £46,548
2014
Level 4 attained
Chartered or Equiv.
£70,351
£87,951
£53,206
£65,286
2013
25%
Chartered Advisers on average earn
than those qualified at Level 4

8. 5.Key Hiring Trends: Financial Advisers
As predicted, 2014 proved to
be a strong and robust year for
advisory firms as the mood of
confidence continued, buoyed
by a strengthening economy and
pensions reforms.
The financial planning divisions
of discretionary investment
management firms are leading
the way in terms of activity with
many seeking advisers of all levels.
The integrated model between
investment management and
financial planning firms is seen
to strengthen the client service
proposition and we have seen
recruitment hires increase due to
business growth.
As our census shows, most
employers are accepting the need
to‘uptheirgame’byincreasingbasic
salaries to attract the real talent.
This is in light of a lack of availability
of good people in the market and
a reticence of planners to move
unless forced through redundancy,
takeover or major changes at their
current employers. Senior level
planners on £75-80k basic salaries
are looking for £100K+ to justify the
risk of a move.
Whilst some firms have now
realised that they need to push
their salary ranges and offer
sizeable uplifts to extract the best
people, employers still looking
for solid, experienced planners
at £50-60K struggle as these
individuals are almost certainly
already on that level and looking
towards the £75K mark. Roles in
this ‘middle ground’ seem difficult
to fill with employers seemingly
unwilling to consider young, up-
and-comers, yet not paying enough
to attract experienced planners.
This prompts questions about
progression for junior advisers,
of which the industry is already
suffering a lack.
Chartered and/or CFP status
remains high on the wish list of
employers as they continue to
recruit highly qualified individuals.
Large parts of the industry have
embraced the need for academic
excellence and it continues to be
a differentiator when promoting
their proposition.
The Retail divisions within banks
and building societies did not
see much in the way of growth in
2014.The majority of hires were
due to attrition peppered with
sporadic recruitment triggered by
the end of recruitment embargos
previously imposed through
internal changes or restructures.
However, 2014 did see
the emergence of major
changes within job roles and
responsibilities as employers
opted to combine relationship
management with financial
planning positions. This resulted
in a number of relationship
managers becoming qualified
to offer regulated advice and
financial advisers being asked to
take on additional responsibilities
of day to day servicing including
a number of non-regulated sales
activities. It remains to be seen if
these changes will work and there
are still questions as to whether
these changes were driven by
employers looking to cut costs or
perhaps, offer clients a ‘one stop
shop’ for all their needs.
Banks & Building Societies
Predictions for 2015
Summary
It has been a busy start to the year and firms seemed to turn their
attention to recruitment slightly earlier than the normal post-Christmas
break. There are many good opportunities around for quality financial
planners, particularly at a senior level. There is also an increased appetite
for strong business developers – whilst these types of individuals have
always been sort after, it seems this is even more so in the current
market.
We also expect to see further consolidation in the market and recent
M&A activity is a clear sign of the land grab for assets. Whether this is
for advisory firms to build scale, platforms looking to protect assets and
grow distribution, 2015 will certainly be another eventful year.

9. We would like to say thank you to all the respondents that participated in
this Census and our research partner Brendan Llewellyn of Marketing Edge.
Brendan has over 30 years experience in FS corporate management and
strategic consultancy and has worked intensively with over 40 providers on
strategy,distribution, brand, marketing and research.

10. Contact Us
www.bwd-search.co.uk
Alistair Brownlee James Walker Gareth Davies
Director Director Director
07971 262 782 07970 459 975 07811 110 844
alistair@bwd-search.co.uk james@bwd-search.co.uk gareth@bwd-search.co.uk

11. Financial Services Industry
SALARY AND
BENEFIT CENSUS
2 0 1 4 - 2 0 1 5